For anyone whose Bordon home is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold premises in Bordon with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Bordon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the landlord of her first floor apartment in Bordon, Lily commenced the lease extension process just as the lease was coming close to the critical eighty-year threshold. The transaction completed in May 2005. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were called by Mr and Mrs. E James , who acquired a basement apartment in Bordon in April 2000. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Bordon with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease lapsed in 2103. Having 77 years remaining we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
In 2012 we were contacted by Mrs C Anderson who, having completed a recently refurbished apartment in Bordon in July 2012. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Bordon with a long lease were valued about £183,600. The average amount of ground rent was £65 billed per annum. The lease terminated on 20 October 2083. Having 57 years outstanding we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.